Can a railroad retirement be garnished for a defaulted student loan?

UPDATED: Jul 27, 2011

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Can a railroad retirement be garnished for a defaulted student loan?

Co-signed a student loan (not a Stafford) for $135,000 total; owed by our daughter who is now in default. My husband and I both receive railroad retirement.

Asked on July 27, 2011 Oregon


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In most circumstances, retirement funds in a recogized IRA, pension or retirement fund maintained and overseen by a third person or entity as opposed to the judgment debtor typically are exempt from levy and garnishment in the event of a judgment.

However, if monies are pulled out of the recoginized IRA, pension or retirement fund and placed in the judgment debtor's own bank account, the money now in the judgment debtor's own bank account would be subject to levy and garnishment.

You might consider consulting with a Wills and trust attorney about your situation and the co-signed student loan for your daughter as to protecting your assets further from a judgment creditor.

Good luck.


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